Washington D.C., December 21, 2022

On November 19, 2022, members of the Environmental Affairs Council (the Council) established in the Trade Promotion Agreement (APC) between Peru and the United States, sent a communication to the Secretariat for Submissions on Environmental Enforcement Matters (SACA- SEEM) indicating to proceed to make public the Factual Record related to the submission that alleged non effective compliance with article 3 of Law No.28946, Law that regulates the sulfur content in diesel fuel (Law of Sulfur Content in Diesel) which established the Index of Noxiousness of Fuels (INC) that seeks to impose a higher Selective Consumption Tax (ISC) on the most polluting fuels and with lower ISC on less polluting fuels.

Through this Factual Record, a comprehensive and objective analysis is carried out about the submission that was presented by five Peruvian citizens regarding the non-effective compliance of the Index of Noxiousness of Fuels (INC) established in the Law of Sulfur Content in Diesel.

The scope of this document was presented by Martha Aldana, Executive Director of SACA-SEEM before the Council at its last meeting, on November 30, in this city.

The main findings of this document are the following:

• Although the Law of Sulfur Content in Diesel established that gradually, from January 1, 2008 to January 1, 2016, the Selective Consumption Tax (ISC) on fuels should fully consider the criteria of noxiousness (through the establishment of the INC), the Ministry of the Environment (MINAM) has continued issuing Supreme Decrees after 2016 (in 2018 and 2020) approving INC, and it is expected that this could continue in the future.
• The regulations on INC issued by MINAM and those issued by the Ministry of Economy and Finance (MEF) regarding the ISC are not integrated and rather run parallel to each other; which endangers effective compliance with article 3 of the Law of Sulfur Content in Diesel.

It should be noted that the Secretariat for Submissions on Environmental Enforcement Matters, which is hosted by the Department of Sustainable Development of the Organization of American States (OAS), receives and processes submissions presented by the public, in accordance with the provisions of Articles 18.8 and 18.9 of the APC. The Secretariat constitutes a citizen participation mechanism agreed between Peru and USA to promote the effective application of environmental legislation in each of them.

For more information, visit: https://www.saca-seem.org/en/review-submissions/

Secretariat for Submissions on Environmental Compliance Matters
APC Peru-USA
Phones:
(511)978066326 (Peru)
(240)8892383 (USA)